Africa-Press – Tanzania. EFFORTS to reduce informal settlements got new impetus following the launch of NMB Plot Loan, a micro loan facility offered by NMB Bank Plc in partnership with the government.
The NMB Plot Loan is the first of its kind in the market designed to help Tanzanians to survey, register their land and obtain title deeds.
The loan will be paid directly to the government.
The Minister for Land, Housing and Human Settlement Development William Lukuvi said only 5 per cent of plots have been formalised wince when the government initiated the programme in 2013 as most of the citizens were not capable to pay for the land survey cost.
“The government has invested their trust through NMB to finance the project that is expected to ensure more land formalized across all districts in Tanzania for the next five years,” he said at the launching of the new programme.
The NMB Plot Loan will, thus, speed up the process land formalisation and reduce unsurveyed settlements.
He said the aim of the partnership with NMB Bank is to help most Tanzanians to formalize their land and get their respective title deeds.
Speaking after launching the national settlements formalisation programme in Mbarari District, Mbeya Region yesterday, Mr Lukuvi commended NMB for the Plot Loan scheme saying it will help citizens to enhance the value of their land.
He said most of the citizens are residing in unsurveyed settlements constructed without legal procedures and thus instead of demolishing them, the government has partnered with NMB to formalise through special partnership programme.
Mr Lukuvi said the government has reduced the cost of formalising plots to 130,000/- from 150,000/-, that will be paid by the bank and owners of the plots pay on installments in two years period.
The NMB Bank’s Acting Chief Internal Audit, Benedicto Baragomwa said the Plot Loan will be charged 10 per cent interest and the title deed will be handed over to the owner after paying back the loan.
“Most importantly the plot loan by NMB goes well with the government efforts to ensure that every citizen owning land and living within cities gets their entitled title deeds. Which also make it easier for title deed owners to formally gain access bank loans. I would encourage all of you to take advantage of NMB’s plot loan offering today.
For now, we have started with Mbarali as our pilot area, after which we shall roll it out countrywide. This will enable us to achieve our target before end of the year 2025,” he said.
“After consultation with the government through the Ministry of Lands, we have agreed to provide this service to help more Tanzanians get title deeds to the land they own and at the same time contribute to the development of the country through fees paid in the process of land formalisation,” he added.
Mr. Baragomwa said further that, “Cash flow challenges have been a major challenge that has hindered the majority of Tanzanians to formally own land, which is why we have brought a solution by introducing our Plot Loan facility.
We are offering micro loans to both NMB and non NMB customers (salaried workers, business owners, businesses, farmers) in a bid to support the Government initiative around land formalization.”
NMB Plot Loan is a straightforward, transparent and affordable solution. It meets a critical credit need for customers who might be deterred by need for capital to complete their land formalization process.
